Carlos Netto is Co-founder and CEO of Matera, a software company he founded over 30 years ago in Brazil.
Imagine a world where gig workers, freelancers or even full-time employees can access their earnings instantly—right from a mobile wallet—without waiting on payroll cycles or bank transfers. No processing delays. No weekend gaps. Just money, when and where it’s needed.
This kind of experience is becoming increasingly feasible thanks to embedded finance—the seamless integration of financial services into nonfinancial platforms. While instant payments are one compelling application, they’re just one part of a larger transformation that’s redefining how businesses and consumers interact with money.
Embedded Finance In Action
A powerful example of embedded finance in motion can be seen in Brazil, where one ride-sharing company offers a digital wallet to its drivers. Once a ride is completed, the fare is credited directly to the driver’s wallet. From there, they can use their funds to make purchases via Pix (Brazil’s instant payments system), transfer to a bank account or withdraw at ATMs using a linked debit card. The process is fast, frictionless and deeply integrated into the driver’s daily workflow.
This type of embedded financial experience is becoming more common. Freelancers can get paid for projects as soon as they’re completed, retail and hospitality workers can access their tips and wages immediately, and companies are exploring how to deliver bonuses or reimbursements in real time. As digital-first workforces grow, expectations around timely, accessible compensation are shifting just as quickly.
What Powers Embedded Finance?
At its core, embedded finance is enabled by a modern stack of financial technologies: open APIs, mobile-first digital wallets, real-time payment networks like FedNow and RTP in the U.S. (or Pix in Brazil), and robust identity and compliance tools. Together, they allow brands and platforms to offer financial services in ways that feel natural and intuitive to users—without needing to become banks themselves.
These tools are helping businesses move from simply issuing payments to orchestrating more comprehensive financial journeys, including credit, savings and insurance.
Navigating The Challenges
However, embedding finance into everyday business operations isn’t as simple as flipping a switch. Companies must navigate a complex web of regulations, particularly across different regions. For instance, while Brazilian retailers may hold user funds under certain licenses, U.S. companies must partner with licensed financial institutions to offer similar experiences. Compliance around KYC, data privacy and fund flow management adds further complexity.
Security is also a key concern. As financial services extend into more digital environments, so do risks related to fraud, unauthorized access and misuse of data. Platforms need to build user trust while managing these operational demands.
A Strategic Advantage For Business
The benefits of embedded finance aren’t just about convenience—they can also drive retention, revenue and cash flow improvements.
Consider a large retailer like Target. Imagine if employees were paid instantly at the end of each shift through a Target-branded mobile wallet. That same evening, the employee could use their earnings to shop in-store, covering their daily essentials. Not only would this increase employee satisfaction, but Target could reduce interchange fees normally associated with traditional card payments.
Or take the case of a truck driver whose earnings are deposited into a digital wallet that offers discounts at affiliated gas stations. This creates a closed-loop system where value flows back to both the worker and the business.
Looking Ahead
As more businesses embrace embedded finance, the traditional boundaries between commerce and banking are starting to dissolve. Companies that once saw financial services as outside their scope are now finding strategic reasons to integrate them—whether to improve customer experience, streamline operations or create new revenue streams.
Instant payments are just the beginning. What’s truly transformative is the way embedded finance allows businesses to reimagine how money moves, how people get paid and what kinds of services can be built on top of those interactions.
The question isn’t whether embedded finance will take hold—it’s how businesses, banks and regulators will adapt to support its next wave of growth.
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